Crude Oil and Gold Price Moves May Hinge on US, Japan Trade Talks

CRUDE OIL GOLD TALKING POINTS:

  • Crude oil cost rebound fizzles amid rising marketplace turmoil
  • Gold prices ripped as yields decline, US Dollar finds breakwater bid
  • US, Japan trade talks competence trump IEA news and US CPI data

Crude oil prices attempted a temperate liberation yesterday following a prior session’s heartless selloff. The pierce aloft was quickly aborted however as worrying geopolitical news upsurge – notably from Russia and Turkey – triggered a selloff in rising marketplace resources and broadly soured investors’ mood. The sentiment-sensitive WTI benchmark retreated from intraday highs to tighten with a slight loss.

Gold cost movement was serve perplexed by a bloodletting in a EM space. Haven-seeking flows buoyed a US Dollar alongside Treasury bonds, joyless yields. That put a yellow metal’s purpose as baseline anti-fiat choice during contingency with a impression as non-interest-bearing alternative. Not surprisingly, that translated into vague opening (although sellers narrowly prevailed by a daily close).

US, JAPAN TRADE TALKS MAY TRUMP IEA REPORT AND CPI DATA

Looking ahead, a monthly IEA Oil Market Report competence assistance figure earthy upsurge expectations. Crude prices competence corner adult if it echoes an EIA augury published progressing in a week that envisioned a downshift in US outlay expansion joined with a pickup in demand. Meanwhile, bullion is eyeing US CPI data. Anything brief of a furious flaw from forecasts seems unlikely to authority attention however.

On balance, that substantially puts view trends behind into focus. Continued rising marketplace misunderstanding is expected to continue to cloud a landscape though news of a breakthrough in trade talks between US and Japanese officials competence tip a beam in preference of a somewhat “risk-on” bias. Earlier talks with a EU seem like an good template, with President Trump fervent to give adult unpopular automobile import tariffs for token concessions. In this scenario, a pickup in bond yields competence poke bullion reduce while wanton oil marks share prices upward.

See a beam to learn about a long-term army pushing wanton oil prices!

GOLD TECHNICAL ANALYSIS

The arrangement of a bullish Piercing Line candlestick settlement joined with RSI dissimilarity hints bullion prices competence be bottoming. A mangle above operation building support-turned-resistance during 1221.25 exposes a 1236.6-40.86 area. Near-term support stays during 1204.59, a Aug 3 low.

Gold Price Chart - Daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices demeanour exposed to deeper waste after violation trend line support determined early February. The subsequent covering of support is in a 63.96-64.26 area, with a serve pierce next that exposing 61.84. Near-term insurgency is during 70.41, followed by a teenager separator during 72.88 on a approach adult to a 75.00-77.31 zone.

Crude Oil Price Chart - Daily

COMMODITY TRADING RESOURCES

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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